iso, or extract?
 

I am trying to get an OS to boot of my USB drive. Do I leave it in iso form, or extract it since it is not being burned as an image? I have not had luck with either. Is there something I need to do/create for it to work?

Generally, you can't just dump an ISO onto a USB key and expect it to boot. At the very least, you'd need to replace the bootloader in most cases.

What is your long-term goal? If you want a full install on USB, I'd boot a LiveCD and actually install to USB. It used to be problematic, but I've heard it's gotten better.

DSL doesn't recognize my mouse correctly. Austrumi doesn't read my drive being there at all. I don't know what to use. Its a 512, not a gig...